Toyota Motor North America announced a $3.6 billion expansion of its San Antonio manufacturing campus on July 6, 2026, adding a second vehicle assembly line that will bring production of the Toyota Tacoma pickup truck to Texas and create 2,000 new jobs. The expansion will add 2.5 million square feet to the existing campus, doubling the facility’s size by 2030.
The San Antonio plant currently assembles the Toyota Tundra pickup and Sequoia SUV. With the expansion, the Tacoma will transition from manufacturing in Mexico to the Texas plant, making San Antonio the production site for all three vehicles. The campus also includes a new rear axle plant expected to begin production in Fall 2026. Once complete, the plant’s workforce will grow to approximately 6,000 employees.
The San Antonio facility produced more than 197,000 vehicles last year, according to Toyota. The company said the site was selected after a highly competitive process, bringing Toyota’s total investment in San Antonio operations to $8.3 billion since construction began in 2003.
“Toyota’s continued investment in North America is a testament to our confidence in the region’s workforce, innovation and long-term growth potential,” Toyota Motor North America President and CEO Ted Ogawa said in a statement. “By expanding our San Antonio plant, we are deepening our commitment to American manufacturing, creating meaningful and sustainable jobs.”
Texas Governor Greg Abbott said the project demonstrates the state’s strength as a manufacturing hub. The state is supporting the expansion with a $20 million Texas Enterprise Fund grant, a $50,000 Veteran Created Job Bonus, and incentives through the Texas Jobs, Energy, Technology and Innovation (JETI) program. “Texas is where the world builds bigger, and Toyota shows it once more with a $3.6 billion expansion in San Antonio that doubles their factory footprint and creates 2,000 new jobs,” Abbott said.
Frank Voss, president of Toyota Texas and group vice president of truck manufacturing, said the 2,000-acre site was originally chosen with future growth in mind. “The 2,000 acres of South Texas ranchland our plant stands on today was purposefully selected for its ability to scale with vehicle demand,” Voss said. “We’re excited to add the beloved Tacoma to our existing award-winning lineup.”
The expansion comes amid a broader wave of major manufacturing investments across Texas. Just days earlier, Taiwanese electronics manufacturer LITEON announced a $919 million AI infrastructure facility in McKinney, and the Texas Stock Exchange launched trading operations in Dallas. Toyota’s decision to shift Tacoma production from Mexico to Texas also reflects broader trends in nearshoring and supply chain reconfiguration under the U.S.-Mexico-Canada Agreement framework.
San Antonio Mayor Gina Ortiz Jones and Bexar County Judge Peter Sakai praised the expansion, saying it will strengthen the regional economy and create new employment opportunities across South Texas. The project reinforces Texas’s position as the nation’s leading destination for automotive manufacturing investment.
Sources: FOX 4 News, FOX 4 Business
